pam_ssh does not work with gdm. When logging into gdm, it hangs X, which will not start. Plus, if you ssh keys aren't encrypted, it allows any password to login, which is bad news. This package needs some serious work. This one may need to go upstream.
red0x Send it upstream, then come back and reopen the bug when you have more information that can be used to resolve your issue.
I consider this more of a security hole in the user's configuration than in pam_ssh itself. But if people are going to be accidentally leaving their keys unencrypted, it makes sense to disallow blank passwords by default. I've released version 1.91 with this change plus an option to revert to the old behavior. I'll attach the updated ebuild to this ticket. I can't reproduce the GDM bug, so I'll need a lot more information.
Turns out the ebuild doesn't change at all -- just rename it and bump the version number. The password prompt patch might have some whitespace issues, though.